SVC bank offers federated cloud to smaller banks
SVC Bank has set up an infrastructure wherein the other smaller banks are able to use the same physical infrastructure in shared mode
By Vinita Gupta, InformationWeek, 9/14/2011 2:54:38 PM
Federated cloud means shared resources (the hardware and software)
available on a virtualized environment. In this model, the
companies do not have to invest on the infrastructure and have to
pay as per usage. Shamrao Vithal Co-operative Bank (SVC Bank) is
providing one such infrastructure to help smaller banks.
SVC Bank has set up an infrastructure wherein the other smaller
banks are able to use the bank’s same physical infrastructure
but in shared mode. The different banks are set up and allocated
different work areas, with appropriate security control so that the
confidentially and integrity of each bank is maintained. SVC Bank
currently has four banks using its hardware and software on cloud.
The cloud offering has been made available for these banks since
the past six months.
“Federated cloud is not a business venture or a way of just
sharing the spare space. The motive behind the same is to help the
smaller banks with our technological expertise in addition to the
banking requirements. The smaller banks need technology but have
insufficient skill sets and budget. In fact to support the
cloud offering we have made investment in our IT
infrastructure,” said Ravikiran Mankikar, General Manager-IT,
Shamrao Vithal Co-operative Bank.
For instance, the banking software on the cloud (which includes
application like core banking) is developed by SVC bank. The
software was developed in 2002 and today around 30 banks (mostly
co-operative banks including the four banks on cloud) are using
SVC Bank also has close bonding with many such smaller banks as it
allows them to share their ATMs too. Thus, due to the rich banking
expertise and bonding with SVC Bank, the smaller banks are choosing
SVC Bank’s cloud offering.
There are around 1,500 small co-operative banks but very few have a
good IT infrastructure in place. In this scenario, SVC Bank’s
initiative will help small banks to get access to affordable IT
infrastructure with no expertise or operational cost involved.
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